Stock indices are trading lower on Friday due to military escalation between Israel and Iran. In an extreme-case scenario, this could drive oil prices higher and hinder the fight against inflation, potentially delaying interest rate cuts from the Federal Reserve.
-
US30 is down -1.4%, US500 falls -0.9%, and US100 drops -1.1%.
-
Nvidia leads the BigTech losses, with shares declining nearly 3%.
-
U.S. consumer sentiment, according to the University of Michigan, rose sharply in June. 1-year inflation expectations dropped to 5.1% from 6.4%, while 5-year expectations remained stable at 4.1%.
-
The oil and aerospace & defence sectors are gaining,
-
Adobe shares fall nearly 7%, despite beating EPS estimates and reporting 11% YoY revenue growth.
-
Mastercard and Visa are down almost -6% after major U.S. retailers announced they are evaluating stablecoin opportunities to reduce reliance on traditional payment intermediaries.
S&P 500 Futures (1H Interval)
Last week, the S&P 500 index futures came within 2% of all-time highs. However, today's escalation in the Middle East has triggered a correction in optimistic sentiment. If the U.S. does not become directly involved in the conflict, investors may refocus on trade agreements and the upcoming earnings season. Despite the burden of new tariffs on corporate results, the index has already recovered much of its earlier losses and will strive to hold above the 6,000-point level.
Source: xStation 5
Company News Highlights:
-
RH (RH.US) shares surged +19.0% after the company reaffirmed its financial guidance, calming investor fears over declining demand. The announcement sparked strong pre-market buying.
-
Ring Energy (REI.US) gained over 15% following insider transaction disclosures, interpreted as a positive signal for the company’s outlook. Rising oil prices amid geopolitical tensions also provided support.
-
Occidental Petroleum (OXY.US) rose +5.5%, lifted by higher oil prices due to the Middle East conflict. Other energy companies such as Exxon Mobil, Chevron, and Hess Corp also saw gains.
-
RTX Corp (RTX.US), up +5.2%, a defense manufacturer specializing in ballistic systems, rose in response to increased defense orders following Israeli airstrikes on Iran. Investors are also pricing in potential contracts related to the U.S. anti-missile shield, ‘Golden Dome’.
-
APA Corp added +5.8%, benefiting from rising oil and gas prices. Investors view the company favorably amid higher energy demand and operational stability.
Visa (D1 Interval)
Markets fear that major payment processors like Mastercard and Visa could be impacted by the potential adoption of stablecoins, which use blockchain technology. Visa shares have dropped below the EMA200, with the last two sessions marking the steepest declines since April.
Source: xStation 5
VIX drops 10% amid Wall Street rebound attempt🗽
3 markets to watch next week - (17.10.2025)
Fed's Musalem remarks on the US economy and tariffs🗽
Precious metals decline 📉Gold down 2%; Silver loses 4%
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
